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Barry Callebaut AG (CH:BARN)
:BARN
Top Page
Barry Callebaut AG
(BARN)
55Neutral
Positive Factors
Cost management
Progress on the cost-saving plan is providing better visibility on next year's profitability, aligning with double-digit EBIT growth estimates.
Pricing and market positioning
Barry Callebaut's outsourcing position for chocolate manufacturers is increasingly relevant due to its cost-plus model, helping navigate the high-inflation period.
Valuation
At 10x 12-month forward P/E, valuation looks attractive, reflecting a nearly 60% discount to Barry Callebaut’s ten-year 12-month forward average.
Negative Factors
Cash flow
Management is cautious about free cash flow delivery next year, forecasting a negative cash flow in the first half.
Earnings and guidance
Last week's 1H25 earnings release was disappointing with a significant miss and the FY25 guidance cut.
Volume decline
The 1H25 volume decline of -5% missed expectations as delayed orders from customers should have had a bigger impact than anticipated.
Barry Callebaut AG (BARN) vs. S&P 500 (SPY)
Market Cap
CHF4.17B
Dividend Yield3.78%
Average Volume (3M)29.25K
Price to Earnings (P/E)28.9
Beta (1Y)0.79
Revenue Growth45.87%
EPS Growth-49.83%
CountryCH
Employees13,239
SectorConsumer Defensive
Sector Strength93
IndustryFood Confectioners
Share Statistics
EPS (TTM)26.25
Shares Outstanding5,488,858
10 Day Avg. Volume48,152
30 Day Avg. Volume29,246
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
Price to Cash Flow (P/CF)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF1,109.04Price Target Upside45.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
Barry Callebaut AG Business Overview & Revenue Model
Company DescriptionBarry Callebaut AG is a leading global manufacturer of high-quality chocolate and cocoa products, serving the entire food industry, from industrial food manufacturers to artisanal and professional users of chocolate such as chocolatiers, pastry chefs, or bakers. Headquartered in Zurich, Switzerland, the company operates across multiple sectors, including the production of chocolate, compounds, fillings, decorations, and cocoa products. Barry Callebaut AG is known for its extensive range of innovative products and its commitment to sustainability and traceability throughout its supply chain.
How the Company Makes MoneyBarry Callebaut AG generates revenue primarily through the sale of chocolate and cocoa products. The company's key revenue streams include industrial chocolate production for food manufacturers, gourmet and specialty products for artisanal and professional users, and consumer products sold under various brand names. Additionally, Barry Callebaut offers services such as product development, technical assistance, and training for its customers. Significant partnerships, such as long-term supply agreements with major food companies and collaborations with industry stakeholders on sustainability initiatives, also contribute to its earnings. The company's focus on innovation, efficient production processes, and expanding its footprint in emerging markets further bolsters its revenue generation.
Barry Callebaut AG Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | ||||
| Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 10.39B | 8.47B | 8.09B | 7.21B | 6.89B | Gross Profit |
| 1.38B | 1.35B | 1.22B | 1.15B | 1.06B | EBIT |
| 446.13M | 682.48M | 647.52M | 581.44M | 506.46M | EBITDA |
| 710.41M | 901.65M | 778.83M | 791.98M | 703.71M | Net Income Common Stockholders |
| 189.78M | 444.36M | 360.70M | 383.94M | 316.05M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 978.35M | 488.33M | 880.02M | 1.10B | 1.39B | Total Assets |
| 15.27B | 8.52B | 7.93B | 7.35B | 7.21B | Total Debt |
| 4.80B | 1.80B | 2.08B | 2.38B | 2.76B | Net Debt |
| 3.82B | 1.31B | 1.20B | 1.28B | 1.37B | Total Liabilities |
| 12.43B | 5.63B | 5.03B | 4.67B | 4.85B | Stockholders Equity |
| 2.84B | 2.90B | 2.90B | 2.68B | 2.35B |
| Cash Flow | Free Cash Flow | |||
| -2.35B | -456.69M | 189.07M | 428.66M | 271.61M | Operating Cash Flow |
| -2.06B | -215.10M | 464.96M | 704.08M | 552.50M | Investing Cash Flow |
| -280.93M | -230.99M | -301.68M | -265.01M | -304.93M | Financing Cash Flow |
| 2.77B | -555.00M | -381.50M | -618.98M | 591.13M |
Barry Callebaut AG Technical Analysis
Negative
760.00
Price Trends
1055.04
Negative
1095.56
Negative
1254.89
Negative
Market Momentum
-103.90
Positive
23.95
Positive
17.16
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:BARN, the sentiment is Negative. The current price of 760 is below the 20-day moving average (MA) of 959.95, below the 50-day MA of 1055.04, and below the 200-day MA of 1254.89, indicating a bearish trend. The MACD of -103.90 indicates Positive momentum. The RSI at 23.95 is Positive, neither overbought nor oversold. The STOCH value of 17.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:BARN.
Barry Callebaut AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | CHF26.69B | 39.70 | 1.21% | 5.14% | 0.98% | ||
73 Outperform | CHF35.44B | 32.50 | 1.82% | 7.19% | 22.07% | ||
72 Outperform | $218.47B | 20.27 | 30.10% | 3.27% | -1.77% | -0.85% | |
71 Outperform | CHF4.18B | 18.99 | 19.01% | 1.83% | 2.51% | 18.26% | |
70 Outperform | CHF2.01B | 21.04 | 30.84% | ― | 0.44% | 50.55% | |
64 Neutral | $9.28B | 14.55 | 4.62% | 186.42% | 3.98% | 5.64% | |
55 Neutral | CHF4.17B | 28.95 | 3.78% | 45.87% | -49.83% |
* Consumer Defensive Sector Average
Performance Comparison
CH:BARN
Barry Callebaut AG
760.00
-583.64
-43.44%
CH:ARYN
ARYZTA AG
2.05
0.33
19.32%
CH:NESN
Nestlé SA
87.44
-2.05
-2.29%
CH:GIVN
Givaudan SA
3,841.00
-50.12
-1.29%
CH:LISN
Chocoladefabriken Lindt & Spruengli AG
115,800.00
12,150.77
11.72%
CH:EMMN
Emmi AG
788.00
-75.34
-8.73%
Barry Callebaut AG Earnings Call Summary
Earnings Call Date: Apr 10, 2025 | % Change Since: -27.96% | Next Earnings Date: Nov 5, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Barry Callebaut's strategic advancements and financial stability through its investment program and secured liquidity. However, significant challenges from cocoa bean price volatility, increased operational costs, and volume declines weighed heavily on financial performance. The company is navigating these challenges with delayed cost savings implementation.Highlights
Strong Progress in Next Level Investment Program
Barry Callebaut has achieved 40% of the CHF250 million synergy target, with 36% of SKUs phased out and significant advancements in factory footprint optimization and digital initiatives.
Secured Liquidity and Financial Stability
The company successfully raised financing through a CHF300 million Swiss bond and an oversubscribed EUR1.8 billion bond, maintaining a strong balance sheet and comfortable liquidity.
Growth in Gourmet and Specialty Chocolates
Gourmet business showed resilience with a 0.7% volume growth, rebounding to 3.1% in the second quarter. Specialty Chocolates saw positive growth with a double-digit improvement in North America, EMEA, and Latin America.
Lowlights
Significant Impact of Cocoa Bean Price Volatility
Bean prices nearly doubled year-on-year, leading to increased financing costs and market structure expenses, impacting short-term financial performance.
Volume Decline Driven by Market Dynamics
Overall volume decreased by 4.7% in the first half, with notable declines in Global Cocoa and Global Chocolate segments due to high bean prices and customer behaviors.
High Financing and Operational Costs
Financing costs increased by CHF125 million year-on-year due to higher bean prices and margin calls, coupled with operational challenges leading to a decline in net profit.
Delayed Implementation of Cost Savings
Due to market volatility, there is a 12-month delay in fully realizing the Next Level program's cost savings in the P&L.
Company Guidance
During the call, Barry Callebaut provided guidance on various metrics. They anticipate a mid-single-digit decrease in sales volume due to a challenging environment but are maintaining their commitment to double-digit recurring EBIT growth in local currencies. The company has faced increased financing costs, which rose by CHF125 million year-on-year, primarily due to unprecedented cocoa bean price volatility. The bean price nearly doubled, significantly impacting customer behavior and financial performance. Despite these challenges, Barry Callebaut has secured additional liquidity through euro and Swiss bond issuances and has over 70% of their orders booked for the fiscal year. They are progressing with their Next Level cost savings plan, having achieved 40% of the targeted CHF250 million in synergies, although the full impact on the bottom line is delayed by 12 months due to current market disruptions. The company has also committed to ensuring the dividend per share will not be lower than in fiscal year '23-'24 during the transition period.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.